Dangote refinery: Diesel, JetA1 hit market January, petrol delayed

The Dangote Petroleum Refinery is set to start producing Automotive Gas Oil, also known as diesel, and JetA1 or aviation fuel in January 2024, while the production of Premium Motor Spirit, popularly called petrol, is being delayed by the supply of crude oil in installments.

It was gathered on Sunday that the facility would require a minimum of six million barrels of crude oil to kick-start the full production of refined petroleum products including AGO, PMS, Jet A1 and Dual Purpose Kerosene, otherwise called kerosene.

But what the refinery got last week was one million barrels of crude, while the remaining five million barrels would arrive at the $20bn facility in another five installments.

The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.

Dangote Petroleum Refinery with the capacity to refine 650,000 barrels of crude oil per day covers an area of approximately 2,635 hectares and is located in the Lekki Free Trade Zone in Lagos.

The report also stated that the lack of crude oil supply came as the 650,000 barrels per day Dangote Refinery in Lagos missed the October production projection it had earlier set.

It pointed out that the October production target miss made it the second time in 2023 that Dangote Refinery would raise hopes in Africa, especially Nigeria, of a possible end to petrol importation.

But on Friday, the management of Dangote Refinery confirmed the receipt of one million barrels of crude oil, adding that this would lead to the production of refined products at the facility.

“In a major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency), Dangote Petroleum Refinery and Petrochemicals plant has purchased one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited, one of the largest trading companies in Nigeria as well as globally, trading over eight million barrels of crude oil per day,” the oil firm had stated.

But when contacted on Sunday to confirm whether the company would start pumping out refined PMS based on the one million barrels of crude that it received on Friday, an official of the firm stated that what Nigerians should expect in January would be diesel and aviation fuel.

Six million barrels

The official explained that the facility required a minimum of six million barrels of crude to commence the full production of refined petroleum products, but what it got last week was only one million barrels.

“For a 650,000bpd capacity refinery, it requires a minimum of six million barrels to start production, and what we have done now is to receive one million barrels and it is being discharged,” the impeccable source, who pleaded not to be named due to lack of authorisation to speak on the matter, stated.

“So it is just one million barrels for now, and that means we need to take it in installments for six times, which is six installments of one million barrels each,” the source added.

The official, however, stated that the one million barrels would lead to the production of diesel and aviation fuel, stressing that PMS, kerosene and other refined products would come as the company gets more crude cargoes.

“Ultimately, what that (the one million barrels receipt) means is that by January, maybe in the second week, we should start having diesel, after which aviation fuel will come before we now cascade to PMS,” the source stated.

In the statement from Dangote Refinery on the receipt of its maiden crude cargo, the company stated that the cargo from Shell International Trading and Shipping Company Limited contained one million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring, where it was discharged into the refinery’s crude oil tanks.

“The maiden one million barrels, which represent the first phase of the six million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility.

“The next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

“This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG, before subsequently progressing to the production of Premium Motor Spirit,” the company stated.

It said this latest development would play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.

The firm stated that the facility was designed for 100 percent Nigerian crude with the flexibility to process other crudes, adding that the 650,000 barrels per day refinery could process most African crude grades as well as Middle Eastern Arab Light and even United States Light tight oil, as well as crude from other countries.

“Dangote Petroleum Refinery can meet 100 percent of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have a surplus of each of these products for export.

“The refinery was built to take crude through its two SPMs located 25km from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery has the capacity to load 2,900 trucks a day at its truck-loading gantries.

“Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.